Ways Outsourcing Can Improve How Your Organization Delivers Software

How do outsourcing vendors determine development costs?

Your organization can benefit from the top IT talents worldwide who are dedicated to work on projects allocated by you to the team/vendor.

Overall, the software outsourcing companies save the resources of the client by getting paid for what they deliver.

• Minus the hiring costs.
• Minus the training costs.
• Minus the attrition losses.

Here are the ways outsourcing vendors help you determine the project development cost.

1. Reduce Development Costs & Overhead Expenses

One cannot agree more that outsourcing is cost-effective and helps lower development costs.

The software development cost associated with an in-office team to make an MVP would be sufficient enough for you to roll-out an entire product with different distributed teams.

With cost-saving, you are able to kickstart new product lines, features, go for efficient growth and a surefire expansion of your business.

You can hire an entire outsourced dev team at the cost of a developer in some cases.

Outsourcing vendors can help customer companies cut their labor costs, including various benefits such as training, leaves, insurance, and much more. They figure out the development cost based on the hourly rate of developers without taking into account any other expenses, thus making it an attractive endeavor for the organizations.

However, more and more companies are looking forward to outsourcing their development services to achieve various business objectives beyond just costs.

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2. The Value of Sharing Documentation

Many common problems arise while developing a great software development solution, such as working in silos, shortage of documentation, unclear or half information shared, lack of knowledge transfer within teams, and much more.

So, without taking much of a risk, a good outsource vendor always asks customers to share a precise Software Requirements Specification (SRS) document where business/project requirements are clearly mentioned. It reduces the chances of misunderstanding amongst the stakeholders. Moreover, a set of clear SRS ensures that the software developed by outsourcing partners meets the client’s exact needs like:

• The development team has an adequate knowledge of the tech stack to use in the particular project.
• Designers can prepare their tasks according to the use cases described in the documentation.
• Testers know the kind of test cases they need to consider before they have to sign-off on the product.

It helps the team avoid working in silos and clarify the roles of individuals in the team to deliver quality software. And, once everything is clear, the team documents every information and saves it on collaborative tools wherever clients or team can check for records.

In addition to that, the client can move the said documentation to an in-house team, later.

This process is much more difficult with a standing office hire. Just ask your project manager, what he thinks about a dev KT.

3. Not Obliged to Maintain a Long-Term Contract

What makes more and more companies inclined towards software outsourcing is the flexibility of paying for it during the project timeline. Your organization can engage with these outsourcing vendors only when required. Unlike full-time employees, there is no legal obligation to maintain a long-term contract. It is more advantageous than hiring a full-time in-house employee who might lack the exact technical skills you require for various projects.

Most IT outsourcing companies have their contracts and terms of service ready to be customized according to customer needs. Before signing the contract, they ask you whether you need to maintain a long-term contract or short. Based on that, the milestones, deliverables, and expectations are set.

If you’re a startup founder, this arrangement should make the most sense to you, since you can build an MVP while being flexible in operations and even when being bootstrapped.

4. Set New Key Performance Indicators (KPIs)

When working with a new team, you always need to brainstorm how to achieve, track and measure success. The customer companies must share the business goals, the problem they face, and what kind of solution they are looking for. Based on which, they can set their own KPIs to meet the goals for better results.

KPIs help companies achieve their overall process goals, strategies, and business goals. By measuring the performance of a software development life cycle, a vendor needs to ask the following questions to himself:

• What aspects need to be improved?
• How do you compare the product with a competitor’s project?
• Are we getting better, or are we failing?

Outsourcing lets the customer company track the progress of a project. Outsourcing vendors set KPIs in the form of a sprint that includes: time-taken to develop and design each process, managing iteration process, testing, or release time. It often increases the pressure to meet and exceed expectations faster or to higher standards than in-house teams.

No need to spend time and resources on training and on-boarding

With a highly experienced workforce, you need not spend time on hiring the resources & training them. Thus, it helps customer companies to save enough time to speed up the development process. Moreover, hire the best offshore development team that can address the changes quickly to ensure that the project is delivered on time, thus allowing the customers to have a competitive edge over the competitors.

By delegating tasks to the outsourced developers, companies can focus more on their core competencies. It is important that you hire dedicated offshore development team that caters to your firm, and meets a wide range of particular business needs during the entire development cycle. The professional team offers the required expertise to ensure that the project is running successfully for the customers.

Conclusion

Businesses can’t ignore the economic recession amid the spread of coronavirus. It has nudged various companies to find new talent outside the countries to keep growing, scaling or building through recession.
And in this setting, software outsourcing helps businesses and firms optimize and reduce development costs while keeping them afloat through specialists.

That said, you need to consider various technical and non-technical factors before picking up the vendor. Remember, the quality and success of a software project depend on the experience and skills of the outsourcing partner. Therefore, finding the right vendor will help you outsource all your technology needs by optimizing business processes and maximizing revenue.